Money in Politics Research Action Project
917 SW Oak St. #402, Portland, OR  97205  (503) 283-1922  Fax (503) 283-1877 miprap@oregonfollowthemoney.org

For Immediate Release: January 21, 2002

For more information contact: Janice Thompson 503-283-1922

DOUBLE GIVING IS THE MAJOR STORY ABOUT CONTRIBUTIONS FROM ENRON

Giving on Both Sides of the Political Aisle Common at Federal and State Level

"The real lesson to take home from the recent hue and cry about Enron contributions to the entire Oregon delegation is its demonstration of double giving - or contributions to both sides of the political aisle," says Janice Thompson, Executive Director of the Money in Politics Research Action Project (MiPRAP). "Political contributions that cover all the bases reflect an interest in ensuring influence and access to both parties. These contribution patterns are also seen in contributions to Oregon leadership committees."

Returning contributions from Enron or any other donor is an admirable gesture but doesn't fundamentally change the current system of funding elections. Enron's overall double giving pattern to federal congressional candidates and party PACs is also more significant than arguing that Enron contributions to Oregon elected officials are different from contributions from Enron's subsidiary, Portland General Electric.

Enron did a good job of covering its bases with contributions to 71 out of 100 U.S. Senators and contributions to 40% of U.S. House Members over the last decade. But some of these contributions may reflect the company's willingness to support individual members of Congress regardless of party affiliation. The best examples of double giving are, therefore, contributions to both candidates in the same race or contributions to both Republican and Democrat party committees.

Enron gave over $1.6 million to both Democratic and Republican Party and leadership committees during the 1999-2000 election cycle. At the federal level these are all soft money contributions that are not subject to the $1,000 limit on contributions made directly to candidates. Soft money contributions are intended for party building purposes such as voter registration and get out the vote efforts. Giving contributions to both political parties to encourage their success in electing their candidates appear to be more about ensuring access and influence rather than commitment to a party position.

These cover your bases and double giving contribution patterns are also reflected in donations from Arthur Andersen, Enron's former accounting firm that is a partner in the Enron scandal. Arthur Andersen has made campaign contributions to 95 out of 100 U.S. Senators and to 63% of federal Congress members. Arthur Andersen contributed to both Oregon Senators. Indeed, Senator Ron Wyden is the 5th highest senatorial recipient of Arthur Andersen contributions in the last decade, though Senator Smith also received their support. Arthur Andersen also made soft money contributions in the '99-2000 elections to both Republican and Democratic Party committees with an emphasis on the committees supporting Republican candidates.

Double giving also occurs in Oregon*. Almost one out of every 3 dollars given in 2000 to Oregon's Democratic and Republican leadership committees was from a double giving donor. In some cases the donor gave the exact contribution to leadership committees, for example, Sprint gave $1,150 to each of the four Republican and Democratic leadership committees while Seagrams Co. and a dental organization's committee gave $1,000 to each of these of these PACs.

Double giving by other donors fits a pattern of larger contributions to one party's committees but not forgetting the leadership committees of the other party. For example, Philip Morris gave $31,400 to Leadership Fund that works for Republican Senate candidates and $20,500 to Majority 2000 that supports Republican candidates to the House. But the tobacco company evidently didn't want to alienate the Democrats and gave $7000 to both Future PAC, that supports Democratic House candidates, and to the Senate Democratic Leadership Fund. Portland General Electric's Employee PAC followed the double giving pattern of Enron, its parent company, with $15,230 in contributions to Oregon's two Republican leadership committees and $8,100 to the Democratic leadership PACs.

The political slant to double giving contributions can also favor Democratic committees. The Citizens Alliance for Responsible Education gave $5,150 to the two Democratic leadership committees but hedged their bet with a $1,000 contribution to the Republican Leadership Fund. Local 757 of the Amalgamated Transit Union gave $2,775 to the two Democratic leadership PACs and $1,000 to the two Republican leadership committees.

"Double giving on both the federal and state levels reveals a campaign finance system trap for both contributors and candidates," says Kappy Eaton, chair of MiPRAP's steering committee and a long-time activist with the League of Women Voters and American Association of University Women. "This double giving is bad for democracy and indicates the need for campaign finance reform."
 
 

*A full summary of double giving contributions to Oregon's leadership committees is at www.oregonfollowthemoney.org. Federal contributions figures are from the Center for Responsive Politics at www.opensecrets.org A breakdown of Enron and Portland General Electric contributions and Enron only and PGE only contributions is available at www.oregonfollowthemoney.org